Question

Q.9 If purchase consideration is less than the net assets taken over, then in the books of the
company taking over the firm, the difference is
A. debited to Goodwill A/C
B. credited to Capital Reserve
C. debited to Profit & Loss A/S
O
D. credited to Profit & Loss Alc​

Answer 1

Explanation:

With profit policy b. without profit policy c. whole life policy ... 82) When the Net Assets are less than the Purchase Consideration, the difference ... Debited to Goodwill A/c. b. Debited to General Reserve c.

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